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(1) Overview of Mortgage Lending in United States
1.1- The History of the Mortgage Industry in the United States
1.10- What is a Mortgage Investor?
1.11- What is a Mortgage Servicer?
1.12- What is a mortgage underwriter and its Job Description?
1.13- What is a Mortgage Examiner?
1.14- What is a Mortgage Regulator?
1.2- Start of the Mortgage Industry in United States
1.3- Events Leading to the Implementation of the Federal Laws and need for Consumer Protection in the Mortgage Industry
1.4- What is Role of the Mortgage Loan Originator in Consumer Protection.
1.5- What is a Mortgage Loan Originator (MLO) and its Job decsiption
1.6- What is a Mortgage Broker ?
1.7- What is a Mortgage Banker?
1.8- What is a Registered Mortgage Loan Originator (RMLO) and its Job Description?
1.9- What is a mortgage lender/funder ?
(10) Mortgage loan products
10.1- What is a Fixed Mortgage? Explain Characteristics of a fixed-rate mortgage
10.10- Explain Scenarios reflecting payments increasing/decreasing on “change date”
10.11- What is the Timeline for notifying a customer of a rate change?
10.12- Explain Factors when determining interest rates
10.13- How is a borrower’s monthly payment Calculated on Balloon mortgage loan products? Explain Facts about balloon mortgages
10.14- Explain Types of balloon mortgages
10.15- What are Lender requirements on Baloon mortgages? Explain Scenarios to determine when a balloon loan may be appropriate for a borrower
10.16- What is a Reverse mortgage? Explain Facts on reverse mortgages
10.17- Explain Timeline for calculating interest on home equity conversion mortgage loans
10.18- What Payments are required after closing on a conversion mortgage loan?
10.19- What is the Age requirements for conversion mortgages?
10.2- Draw Comparisons of types of loans (scenarios). Explain Situations that affect a fixed rate mortgage payment
10.2- What is the Amount of title insurance required?
10.20- Explain some Facts on “construction-to-permanent” financing programs
10.21- What is the Permissible percentage of total equity allowed for withdrawal?
10.22- Explain Scenarios that cause the full balance to become due
10.22- Explain Scenarios that cause the full balance to become due
10.24- What are "Purchase Money Second Mortgages"? What are required disclosures?
10.25- What is Home Equity Line of Credit (HELOC)? What are the required disclosures?
10.26- Give some Examples of open-ended credit loans
10.27- What is HELOC? Explain Characteristics of a HELOC
10.28- What are Fundamentals of Construction Mortgages?
10.29- What is Definition of “construction loan”? What is the required payment on a construction loan?
10.3- How does the Percentage of pay down impact monthly payments?
10.30- How is the the disclosure of financing classified by the same creditor when constructing a home?
10.31- What is an Interest-only Mortgages? Explain Facts about interest only loans
10.32- Explain facts on interest only payments
10.4- What is a Fixed-rate mortgage loan with escrow?
10.5- What is an Adjustable rate Mortgage? What are Payment options for an adjustable-rate mortgage? Explain Facts on margin with respect to adjustable-rate mortgages
10.6- Explain Facts on the index with respect to adjustable-rate mortgages
10.7- What is the Definition of “fully indexed rate”?
10.8- Give some Examples of adjustable-rate mortgages. Explain some Scenarios resulting in a change in monthly payments and Facts on ARM loans
10.9- Explain Fully indexed rate scenarios
(11) Ethical issues and behavior related to loan origination activities
11.1- What is the Gramm-Leach Bailey Act? What are Prohibited Acts? Explain the consequences of Violations of Gramm-Leach Bliley Act
11.10- What is Coersion? Explain Coercion scenarios
11.11- Explain Scenarios where the appraiser has a conflict of interest
11.12- Explain Discriminating against a loan applicant
11.13- What are the Requirement to treat all applicants with the same level of fairness?
11.14- How is Truth in marketing and advertising conducted?
11.15- Explain Scenarios where information is misleading within an advertisement
11.16- What is Bait and Switch? Give a few Bait and switch scenarios
11.17- What is due deligence? What is the importance of Performing a due diligence review of advertisements prior to publication? Explain Scenarios where “unfair, deceptive, or abusive acts” are undertaken
11.18- Give Examples of lawful advertising. What are Types of advertisements that are subject to federal regulations? What are the Rules surrounding contact (e.g., “Established business relationship”)? What are Permissible statements/phrases within an advertisement?
11.19- How is the Borrower education conducted? How is Fraud detected?
11.2- What is "redlining"? Give Examples of “redlining”
11.20- What is Asset fraud?
11.21- What are Red flags on a sales contract?
11.22- What are red flags on an Application?
11.23- How is fraudulent information verified on a loan application? (Income Fraud, Occupancy Fraud, consumer's bank activity )?
11.24- Explain some General red flags that could represent fraud
11.25- Explain Scenarios surrounding a consumer’s bank activity
11.26- Explain Scenarios where information is not provided to a borrower
11.27- Explain Employment fraud, Liability fraud, Suspicious activity
11.28- What are Permitted fees, payments, and compensation (e.g., Loan Estimate)?
11.29- What are the Fees that may not increase due to changed circumstances ?
11.3- What is RESPA? What are Acceptable/non-acceptable practices under RESPA? Give Examples of prohibited acts
11.30- How are the fees handled based on the Loan Estimate
11.31- Explain Closing cost scenarios
11.32- Explain Settlement scenarios where monies are missing or misused
11.33- Explain Scenarios surrounding referral fees, Splitting fees
11.34- How are consumer complaints handled? What are Mortgage company compliance requirements? What are Acceptable practices when acting on behalf of a lender
11.35- What are Acceptable practices regarding appraisals?
11.36- Explain Scenarios when an MLO discovers material information that should be conveyed to the lender
11.37- Explain Scenarios surrounding the information supplied by employers
11.38- Explain Requirements for MLOs regarding Relationship with consumers, Ethical handling of a customer’s personal information, Down payment scenarios, Interest rate adjustment scenarios, Power of Attorney (POA) scenarios, Permissible reasons for requesting a credit report, Scenarios of notifying the underwriter of a change in the borrower’s application or status
11.39- Explain Proper disclosures by MLOs if there is a potential conflict of interest, Scenarios surrounding situations with borrower’s and co-borrower’s
11.4- What are acceptable Requests for personal information?
11.40- Explain Permissible acts of MLOs regarding the appraisal of a client’s property, Scenarios surrounding situations with borrower’s undisclosed income, Permissible acts after discovering deposits inconsistent with borrower’s income included on application, Scenarios involving a gift received by the borrower,
11.41- Explain Scenarios of notifying a loan officer if a borrower has applied with other companies for additional mortgages, Scenarios surrounding a borrower providing information on income,
11.42- Explain Cybersecurity scenarios , General business ethics, Scenarios where borrower has provided false information, Scenarios where borrower is seeking advice,
11.43- Explain Scenarios where the MLO is falsifying information on behalf of a borrower, Providing suitable unsolicited advice to a borrower, Scenarios where outside parties/individuals to the loan attempt to obtain information on a loan or about a borrower
11.5- What are "kickbacks"? Give some Examples of “kickbacks”
11.6- What are the Duties a loan processor may/may not perform?
11.7- What is Predatory lending and steering?
11.8- Explain "Fairness Lending"
11.9- What is the Definition of a "referral" and the required associated disclosures, and when are they necessary?
(12) SAFE Act and CSBS/ARRMR Model State Law
12.1- What is SAFE Act and CSBS/ARRMR Model State Law ?
12.10- What Persons are required to be licensed ?
12.11- What Services can be conducted by MLOs and the requirement to be licensed ?
12.12- What Entities are required to use MLOs?
12.13- What acts are Allowable by underwriters ? Clerical/support duties, Loan processors ?
12.14- What type of Business individuals may/may not conduct without being licensed as an MLO ? General business, Non-profit institutions, Business purpose loans (e.g., commercial, non-owner)?
12.15- What are Pre-licensing education requirements? Background checks o pther Requirements to becoming an MLO, Managing felony charges, Waiting period for test retakes, Sponsorship requirement,
12.16- Explain an “MLO's” requirement to be licensed with a state, Grounds for State denying a license, Reasons for denying an applicant , License maintenance, Continuing education requirements, Renewal period, License renewal lengths and minimum standards, Continuing education courses approvals, Withholding a record
12.17- Explain Requirements to re-take exam if individual has been absent from industry, Requirement to maintain an active license, Required continuing education hours completed to renew a license
12.18- What are NMLS requirements? Change of employment and updating NMLS, Required submissions that applicants must make to the NMLS, Required disclosures to NMLS, Requirement to publicly display an NMLS identifier, Requirement to include the NMLS identifier in certain situations
12.19- What are Licensed non-depository employees’- vs registered depository employees’ in NMLS? Explain requirement for Compliance, Authority to examine licensee’s books and records, Prohibited conduct and practices
12.2- What are State mortgage regulatory agencies and their regulatory powers?
12.20- What are Prohibited acts ? Explain Requirement to obtain a unique identifier
12.21- How are Investigations by state agencies conducted? What is the Required conduct?
12.22- What Individual is responsible for providing documents during a complaint investigation?
12.23- What is the Required information to be maintained in a loan file?
12.24- What are Assumable mortgage loan products?
12.25- What are Penalties assessed for failure to conduct certain duties ?
12.26- What are Permissible acts? What is the Timeline for submitting books and records to a state regulator?
12.27- Explain General scenarios regarding mortgage loan origination, Required information on loan documents, Record retention requirements, Advertising, and Requirement to include NMLS unique ID in advertisements
12.3- What is CFPB? What is CFPB's authority ?
12.4- What are Continuing education requirements ?
12.5- What are CFPB penalty limits ?
12.6- What is CFPB Loan Originator Rule ?
12.7- What is the Authority of state regulator (e.g., audit)? What are its Responsibilities and limitations
12.8- What Documents are required to be filed for public record?
12.9- Explain License Law and Regulation. What are Minimum requirements for state licensing laws
(2) Regulatory Authorities Overseeing the Mortgage Industry
2.1- What Regulatory Authority Oversees the Mortgage Industry?
2.10- How many housing agencies are required to be listed on the housing counseling disclosure?
2.11- What Types of loans trigger the requirement for a counseling agency to consult with a borrower?
2.12- What Entities does HUD oversees?
2.13- What is the Fair Housing Law Protections (e.g., health status, etc.)
2.2- What is the Consumer Financial Protection Bureau (CFPB)
2.3- How does the Federal Govt. oversee the CFPB?
2.4- What Functions are performed by the CFPB?
2.5- What is the oversight authority of CFPB?
2.6- How are complaints Filed with CFPB?
2.7- What is Department of Housing and Urban Development (HUD)?
2.8- What is the Primary function of HUD?
2.9- What are the Programs offered by HUD?
(3) Federal Mortgage-Related Laws
3.1- What is Real Estate Settlement Procedures Act (RESPA), 12 CFR Part 1024 (Regulation X)
3.10- What steps are required during the foreclosure process?
3.100- What Information must be included on a Closing Disclosure?
3.101- What Information must be disclosed in an annual escrow statement?
3.102- What is the definition of Acceleration?
3.103- Explain The right to receive an appraisal report • Home Mortgage Disclosure Act (HMDA), 12 CFR Part 1003 (Regulation C)
3.104- Explain Mortgages in reportable data
3.105- What is the HMDA definition of “dwelling” ?
3.106- What Information is included in borrower data?
3.107- What is the Information that a borrower must include on an application ?
3.108- What Information an MLO should not inquire?
3.109- Explain Information provided by the borrower regarding the right of refusal • Fair Credit Reporting Act (FCRA)/Fair and Accurate Credit Transactions Act (FACTA) 15 USC § 1681 et seq.
3.11- What is the Initial escrow statements?
3.110- What is the Definition of a “fraud alert”?
3.111- What is the Information included in a “consumer report” ?
3.112- What re Permissible times when a credit report may be accessed?
3.113- What is the Requirement to develop policies and procedures regarding identity theft?
3.114- What is the Definition of “creditor”
3.115- What is the Information included in a FACTA disclosure?
3.116- What is the Length of time a bankruptcy will show on a credit history?
3.117- What are the Credit score evaluation methods • FTC Red Flag rules, 16 CFR Part 681 ?
3.118- What are the Parties subject to “red flag” rules?
3.119- What is the Enforcement authority for “red flag” rules • Bank Secrecy Act/Anti-Money Laundering (BSA/AML) ?
3.12- What Changes can be made to the HUD-1/Good Faith Estimate?
3.120- What are the Requirement that companies protect consumer information?
3.121- What are the Facts about Suspicious Activity Reports (SARs) ?
3.122- What are the Circumstances that require filing a SAR?
3.123- What are SAR privacy requirements• Gramm-Leach-Bliley Act (GLB) – Privacy, FTC Safeguard Rules and Do Not Call ?
3.124- What is on-public information regarding a customer?
3.125- What is Permissible use of non-public information regarding a customer?
3.126- What is the Purpose of Act
3.127- What is the Requirement for written privacy policy disclosures ?
3.128- What are Acceptable delivery methods for a privacy notice?
3.129- What are Permissible hours for telephone calls ?
3.13- What is the Equal Credit Opportunity Act (ECOA), 12 CFR Part 1002 (Regulation B)?
3.13- What is the process of Issuing a Good Faith Estimate when all the information has not been provided?
3.130- What is the requirement for Written policies for maintaining Do-Not-Call lists?
3.131- What Precautions should be taken to protect customer information?
3.132- What is the Purpose of the National Do-Not-Call Registry ?
3.133- What are Permissible solicitation scenarios?
3.134- How should a Do-Not-Call request be handled?
3.135- Retention of information after a solicitation • Mortgage Acts and Practices – Advertising, 12 CFR Part 1014 (Regulation N)
3.136- What is the requirement for Advertisements referring to specific credit terms?
3.137- What is the Length of time required to retain advertisements ?
3.138- What Information is required to be included in an advertisement?
3.139- What are the Triggering terms that require additional disclosure?
3.14- What Factors cannot be used to discriminate?
3.140- What is the Violations of the Act • Electronic Signature in Global and National Commerce Act (E-SIGN Act) ?
3.141- What are the Required ESIGN disclosures?
3.142- How is the Borrower’s consent obtained regarding access to information in electronic format?
3.143- What are the Requirements for maintaining records in electronic format?
3.144- What are the Ways to verify a borrower’s identity • USA PATRIOT Act?
3.145- What is the Primary purpose of the Act?
3.146- What are the Major functions of the Act?
3.147- What is the Confidential nature of filing reports ?
3.148- What are the Ways to verify a borrower’s identity?
3.149- What Parties are subject to the Act?
3.15- How is the borrower notified of action taken?
3.150- What is the Requirement to have a Customer Identification Program in place and verifying the identities of borrowers • Homeowners’ Protection Act (Private Mortgage Insurance (PMI) Cancellation Act)?
3.151- What are the Major functions of the Act?
3.152- What Documents must be provided to a borrower at loan consummation • Dodd-Frank Act ?
3.153- What are the Re-financing situations?
3.154- Explain Law oversight over TRID
3.155- What are the Independent appraisal requirements ?
3.16- What are General permissible acts under the Equal Credit Opportunity Act?
3.17- Under what Circumstances is it acceptable to deny credit/loan?
3.18- Components of a “notice of adverse action”
3.19- What is the Definition of “adverse action”
3.2 What is the origin and purpose of RESPA?
3.20- What are the General provisions of Regulation B ?
3.21- What are the Exceptions to providing the appraisal report?
3.22- What are “Prohibited Factors” ?
3.23- What are Required disclosures when an application is denied?
3.24- What Acceptable terms can be used to describe marital status?
3.25- What procedure should be adopted to issue an Adverse action notice, including when multiple applicants/guarantors are on the loan request?
3.26- What is the Definition of “elderly” ?
3.27- What are “Disparate treatment” scenarios?
3.28- What are Record retention timelines?
3.29- What are the Requirement for a co-signer?
3.3- What are the prohibitions, limitations and exemptions set by RESPA
3.30- What Factors are considered when determining creditworthiness?
3.31- What are the Types of acceptable income considered during a loan review?
3.32- How is a Request for missing application information made and communicated?
3.33- Explain Adverse action scenarios
3.34- Information required on a loan application
3.35- What are the charecteristics of Adverse action?
3.36- What is the required Timeframe for sending an adverse action to an applicant?
3.37- What are the Actions an MLO should take when a borrower refuses to provide ethnic, race or gender information • Truth-in-Lending Act (TILA), 12 CFR Part 1026 (Regulation Z) ?
3.38- What is “Notice of right to rescind” ?
3.39- What are Permissible fees and finance charges?
3.4- What Types of loans is RESPA applicable to?
3.40- What are guidelines and requirements for Advertisement?
3.41- What is the core concepts of the Truth-in-Lending Act?
3.42- What is Total points and fee threshold?
3.43- What is the Definition of “finance charge” ?
3.44- What is the Definition of “annual percentage rate” ?
3.45- What Loans are covered by the Truth-in-Lending Act?
3.46- What is the Definition of a “business day”?
3.47- What are Permissible annual percentage rate tolerances?
3.48- What is the Definition of “dwelling”
3.49- What is the Definition of “residential mortgage loan”
3.5- What are Settlement services ?
3.50- What is the Definition of “business day” in a mortgage rescission
3.51- What are Record retention timeframes?
3.52- How are “seller contributions” Classified?
3.53- What are Refinancing scenarios with rights to rescind certain types of transactions • Home Ownership and Equity Protection Act – High-Cost Mortgage, HOEPA Sections 32 and 12 CFR Part 1026 ?
3.54- What is Minimum term for a balloon payment?
3.55- What are Examples of “covered loans” ?
3.56- What is allowed under HOEPA
3.57- What are the Limitations on broker fees?
3.58- What is the Entity that enforces HOEPA?
3.59- What Types of loans/lines of credit are subject to HOEPA • Higher Priced Mortgage Loans (12 CFR 1026.35) ?
3.6- What disclosures is required to the customer for an MLO who is also a broker?
3.60- What is the Definition of “high priced/cost mortgage”?
3.62- What are the Prohibitions within “high priced” mortgages?
3.63- Explain Loan Originator Compensation relating to Refinance mortgage loans • (12 CFR 1026.36(d)) ?
3.64- What is the compensation of MLO based upon?
3.65- What are the The rules for who may compensate an MLO • TILA-RESPA Integrated Disclosure Rule (TRID) (a.k.a “Know Before You Owe”) ?
3.66- What are the Prohibitions on discrimination?
3.67- What are the timeframes on Disclosure?
3.68- What is the Section on disclosure where origination charges are reflected?
3.69- What is the Affiliated Business Disclosure Special Information Booklet?
3.7- What are Bona fide discount points and its application during a mortgage loan origination?
3.70- Where is the Borrower information included on Regulation Z?
3.8- What information is Required from a borrower that must be included on an application (Regulation X)?
3.80- What is the Record retention?
3.81- What are the Required disclosures ?
3.82- What is the Timing of disclosures provided to an applicant?
3.83- What are the Types of permissible fees and finance charges?
3.84- What are the Circumstances under which a Loan Estimate may be amended?
3.85- Explain General information about the TILA-RESPA Disclosure Rule
3.86- What are Examples of “change of circumstance”?
3.87- What is the Borrower information that is included on an application?
3.88- What is the Information that must be disclosed to consumers upon request ?
3.89- What is an annual percentage rate?
3.9- What is the role and function of third party settlement service providers
3.90- What Party is required to provide the Loan Estimate?
3.91- What Types of loans are covered under TILA?
3.92- What Actions an MLO must take when there is incomplete information on a TRID disclosure?
3.93- Explain a Scenario in violations of TRID
3.94- What is A borrower’s right to rescission?
3.95 What is the Definition of loan consummation?
3.96- What is Information that must be disclosed on a Loan Estimate?
3.97- Explain the Facts about Loan Estimate
3.98- What are the requirements regarding Informing a borrower of other loan considerations?
3.99- How are the Charges/fees disclosed?
(4) Loan Origination Activities
4.1- What are "Junior liens"?
4.10- What is a "Delinquent loan"?
4.11- What are "High cost loans"?
4.12- What is "Early payment default"?
4.13- What are "Yield spread premiums"?
4.14- What is "High interest rates"?
4.15- What are "Federal mortgage loans"
4.17- What are "Servicing transfers"?
4.18- What are "Lender credits"?
4.19- What are "Discount points"?
4.2- What are "Subordinate loans"?
4.20- What is "2-1 Buy-down"?
4.21- What is "Accrued interest"?
4.22- What is "Loan-to-value ratio"?
4.23- What is "Settlement"?
4.24- What is "Finance charges"?
4.25- What is a "Loan discount point"?
4.26- What is Debt ratio?
4.27- What is "Daily simple interest"?
4.28- What is "Premium pricing"?
4.28- What is "Premium pricing"?
4.29- What is "Lender credit"?
4.3- What are "Escrow accounts"?
4.30- What is "Subordination"?
4.31- What is "Conveyance"?
4.32- What is "Cash out refinance"?
4.33- What are "Pre-paids"?
4.34- What is "Underwriting"?
4.35- What is "Secondary market"?
4.36- What is "Third party providers"?
4.37- What is "Primary mortgage market"?
4.38- What are "Non-traditional mortgages"?
4.39- What is "Consumer Credit"?
4.4- What are "High priced mortgages"?
4.40- What is "Loan payment collection"?
4.41- What is "Assumable loan"?
4.42- What are Examples of origination service?
4.43- What is "Assigned loan"?
4.44- What is "Payment shock"?
4.45- What is "Annual Percentage Rate (APR)"?
4.46- What s "Average Prime Offer Rate (APOR)"?
4.5- What is "Table funding Rate lock agreement"?
4.6- What are "Tolerances"?
4.7- What is "Legal title granted via a mortgage"?
4.8- What Types of mortgages a lender cannot be forced to repurchase?
4.9- What are "Facts on liens"?
(5) Loan Inquiry and Application Process Requirements (1003)
5.1- What Information is required on Form 1003?
5.10- What are the Questions on a Borrower Application?
5.11- How do MLOs accept loan applications?
5.12- What is the process of Offering and negotiating the terms of a loan?
5.13- How information on an application is managed by MLO?
5.14- What Service charges are subject to 10% tolerance?
5.15- How is the information on documentation verified?
5.16- What Forms are used to authorize the release of information?
5.17- What are the Methods of verifying income and assets?
5.18- What Percentage of bank account assets are attributable toward a loan application?
5.19- What are Methods of verifying employment?
5.2- What Percentage of bank account assets are attributable toward a loan application?
5.20- How is Suitability of products and programs matched to applicant?
5.21- How is the suitable type of loan on a mortgage application reflected and disclosed? What disclosure is required and how is it communicated?
5.22- What Information is included in the Truth-in-Lending disclosure
5.23- How are Disclosures on Loan Estimates provided?
5.24- What are Adjustable-rate mortgage loan disclosures and how are they disclosed?
5.25- What is the Consumer Handbook on ARMs (Charm booklet)? and how is it disclosed?
5.26- How are Reverse mortgages communicated and disclosed with Accuracy (e.g., tolerances)?
5.27- What are different Scenarios attributed to allowable tolerance?
5.28- What Service charges are subject to a 10% tolerance and their Timing?
5.29- Explain "Timing of notification of action taken"
5.3- How is credit Handled?
5.30- Explain "Timing of early disclosures and Loan Estimate"?
5.31- What is the Timeline of when a Loan Estimate must be provided?
5.32- Explain Expiration of charges and terms in a Loan Estimate and timings?
5.33- Explain the concept of process "Time from Loan Estimate to loan consummation"
5.34- What are Exceptions to providing the Loan Estimate?
5.35- How is a Loan Estimate reissued?
5.36- What is Time period for the delivery of the Affiliated Business Disclosure?
5.37- What is Time period for the delivery of the Special Information Booklet (Know Before You Owe)?
5.38- What is the Time frame for the consideration for settlement charge before the expiration?
5.39- What is the Timing for reissuing Loan Estimates?
5.4- How are discrepancies reported?
5.40- What is the Timeline of the initial Loan Estimate disclosure?
5.41- What is the Timing of providing the appraisal report?
5.42- What is the Timing and time line for tolerance corrections , i.e Sending a list of counseling services
5.43- How is Shopping conducted? How are Valid reasons for a Change in Circumstance communicated? Explain acceptable Delivery Method and process. Explain the communication methods, Electronic, Face-to-Face and Standard Mail
5.44- Explain significance of Overnight Delivery of Closing Disclosure
5.45- When are loan applicants entitled to advance inspection of a closing "documents"?
5.46- What is Initial Closing Disclosure?
5.47- Explain the Timing of Disclosures
5.48- What is Final Closing Disclosure?
5.49- What is the Time frame of providing an updated closing disclosure?
5.5- Who are Acceptable gift donors?
5.50- What is the Definition of a business day for delivery purposes and explain Homeownership Counseling Disclosure
5.6- What is Loan Inquiry Process?
5.7- What are Required disclosures that must be provided to a borrower in response to a loan inquiry?
5.8- What accurate information is required on an application (e.g., name, SSN, address of property to be financed, estimated property value, income, loan amount)?
5.9- What are the Permissible questions on an application and what is the Application Process?
(6) Loan Qualification Requirements, Processing, and Underwriting
6.1- During Borrower analysis, what are Acceptable assets that may be used for a down payment?
6.10- Can Social security and/or disability income be applied toward a loan analysis or as qualifying income?
6.11- What Documentation is required for work history and income when there has been an absence in employment over 3 years?
6.12- How is monthly income Calculated?
6.13- What Information is included on a credit report?
6.14- What Factors are used in determining a credit score?
6.15- What are Qualifying ratios? What is the Definition of “capacity”?
6.16- What Factors are considered when calculating the expense-to-income ratio and how is it calculated?
6.17- What factors are considered when calculating Loan to value ratios and how is it calculated?
6.18- How is the debt-to-income ratio Calculated?
6.19- How is the housing to income ratio Calculated?
6.2- During Borrower Analysis, how are Assets Classified (Types of asset classifications)?
6.20- How is the total debt ratio calculated?
6.21- What are the Factors taken into consideration when reviewing an applicant’s ability to repay a loan?
6.22- What are the Methods of verifying income/assets?
6.23- How is a borrower’s ability to repay the loan determined?
6.24- What is the Allowable debt to income ratio at loan consummation?
6.25- What are Safe harbor provisions and scenarios?
6.26- Explain Ability to repay scenarios
6.27- Explain Tangible net benefit
6.28- What are different occupancy types?
6.29- Explain Verification of Deposit scenarios
6.3- During Borrower Analysis, what Assets are permissible to be used toward reserve funds?
6.30- What is the Purpose of appraisals?
6.31- What is "Market approach"?
6.32- What is "Income approach"?
6.33- What is "Cost approach"?
6.34- What is "Market data approach"?
6.35- How is comparable information used to establish values?
6.36- What is the Requirement/timeline to inform applicant of the right to receive an appraisal?
6.37- Explain Facts on appraisals?
6.38- What is the Definition of “appraisal”?
6.39- What is Appraisal requirement with a high-risk mortgage?
6.4- During Borrower analysis, what Actions are not permitted with respect to Verification of Deposits?
6.40- What is the Definition of “appraiser”?
6.41- What is a Title report and how are title reports obtained?
6.42- What are the Timings of title reports and its commitments
6.43- What is the Preliminary Title Reports Cost approach?
6.44- What is the significance of Flood Zone and explain the requirements of Flood Insurance for specific properties in the flood zone?
6.45- What limits are mandatory for flood coverage and how are they determined?
6.46- What is Private Mortgage Insurance and the Purpose? What are the Benefits of private mortgage insurance? Explain Facts on private mortgage insurance and ratios?
6.47- What are Requirement guidelines to ending private mortgage insurance?
6.48- What is Loan to value ratio that triggers private mortgage insurance ?
6.49- What is Hazard/Homeowner Insurance? What is Forced-placed insurance?
6.5- What type and how are Liabilities listed on a loan application?
6.6- Explain Types of liabilities
6.7- For verification of Income, what Documentation is required for a self-employed applicant?
6.8- How is Capital Gains Income Utilized on a loan application?
6.9- What Types of income are acceptable and applicable for qualification of a loan?
(7) Closing
7.1- What is Title and title insurance? What is the coverage of Title insurance?
7.10- What is the process of proper Explanation of Fees/charges listed on HUD-1 Settlement Statement, Title insurance fees, Pre-paid fees, Types of escrow expenses.
7.11- What are examples of Origination fees?
7.12- What are Loan origination fees?
7.13- What documents are required at a closing?
7.14- What documents are Required that pertain to the specifics when using a property as collateral?
7.15- What document pertains to "Note disclosures on a loan" and what is its significance?
7.16- What are the "Assumption clauses"?
7.17- What is the "escrow analysis statement" ?
7.18- Explain the "Funding" and the document that pertains specifically to funding.
7.19- What is a rescission period and when does it end?
7.2- Explain Priority in multiple mortgage scenarios
7.20- Explain Funding regarding rescission period.
7.3- What is the Definition of “easement”?
7.4- What are Encumbrances?
7.5- What is Reconveyance?
7.6- What is a Settlement/Closing agent?
7.7- Explain Borrower/Seller’s ability to review the HUD-1 Settlement Statement?
7.8- What is the significance and process of obtaining Eligible signatures on the security instrument?
7.9- Explain the proper Use of a Power of Attorney (POA)
(8) Financial Calculations/Mortgage Math/APR
8.1- What is "Periodic Interest"?
8.10-Explain the Order of payments and importance of payments to the underwriting of loan
8.11-What is Closing Disclosure information?
8.12-Explain Down Payments
8.13-How is the down payment amounts/percentages calculated?
8.14-What is Loan-to-value ratios?
8.15-Explain Loan-to-value ratio calculation scenarios
8.16-What is Debt-to-income ratios?
8.17-Explain Debt ratio calculation scenarios
8.18-What Factors are taken into account in calculating debt ratios?
8.19-What are Discount Points?
8.2-Explain "Interest rate calculation scenarios".
8.20- What is "Fixed interest rate buy-downs"?
8.21- What is "Permanent note"?
8.22- What is the Definition of “discount point”? Explain Discount point calculation scenarios. Explain Purpose of discount points
8.23- What is Closing costs and prepaid items? Explain Closing costs/pre-paid items calculation scenarios
8.24- How is Hazard insurance collected?
8.25- Explain ARMs (e.g., fully indexed rate)
8.26- Explain "Interest rate adjustment calculation scenarios"
8.27- Explain Payment adjustment calculation scenarios
8.28- Explain Qualified Mortgage monthly payment calculations
8.29- How is the debt to income ratio calculated on Traditional and Non-Traditional Mortgage Products?
8.3-Explain the General facts
8.30- What is Fannie Mae and what are its Responsibilities? What are the Limits on closing cost concessions?
8.31- What are the Fee charges on loans with certain risk characteristics?
8.32- Explain the Fannie Mae/Freddie Mac’s automated underwriting systems
8.33- What are the Requirements when purchasing a non-owner occupied rental property? What are the Acceptable down payment amounts?
8.34- What are Hazard insurance requirements?
8.35- What are the Pre-payment requirements? (e.g., FHA, VA, USDA)?
8.36- What is the Definition of “FHA Mortgage”? Explain Facts about FHA loans
8.37- What is a VA loan? Facts about VA loans
8.38- Explain Prohibition on mortgage insurance on certain loan types
8.39- Explain FHA interest rate calculation scenarios
8.4-Explain "Interests per diem facts"
8.40- What are the different Types of government guarantors?
8.41- What is Definition of “entitlement”?
8.42- What is the "Certificate eligibility requirement"?
8.43- What are Acceptable funds for a down payment/closing costs?
8.44- What Properties are eligible for FHA purchase transactions?
8.45- What are FHA loan limits?
8.46- Explain "VA funding fees".
8.47- What is Upfront mortgage insurance premiums?
8.48- How is the "Residual income qualification test" conducted?
8.49- What is the Required documentation?
8.5-Explain different Calculation scenarios for mortgage insurance
8.50- Explain the Monthly mortgage insurance payment scenarios
8.51- What is the Minimum down payment for an FHA loan?
8.52- What is the Conventional/nonconforming (e.g., Jumbo, Alt-A) loan? Explain Facts on “jumbo loans”
8.53- What is the Definition of “non-conforming” loan? Give Examples of “non-traditional loans”.
8.54- What are the Requirements for an escrow account associated with a “high priced loan”?
8.54- What are the Requirements for an escrow account associated with a “high priced loan”?
8.56- Explain Statement on Subprime Lending
8.57- What is the Definition of “payment shock” ?
8.58- Definition of “subprime” mortgage or loan?
8.59- Explain Characteristics of ARM loans?
8.6-Explain Calculation scenarios for interest rates
8.60- What is Definition of a debt-to-income ratio assessment?
8.61- What are Examples of credit risk characteristics ?
8.62- Give some Scenarios to determine when a balloon loan may be appropriate for a borrower
8.63- What are the Characteristics of subprime borrowers ?
8.64- What are the Characteristics of a subprime mortgage Stated income loans Non-income verifying loans?
8.65- How are borrowers Guided on Nontraditional Mortgage Product Risks?
8.66- What are Characteristics of a non-traditional mortgage loan?
8.67- What are Risks of non-traditional mortgage products?
8.68- What is "Re-payment capacity of a borrower"?
8.69- How is the the right non-traditional mortgage product for borrowers selected?
8.7-Explain Calculation scenarios for monthly payments
8.70- What are important required Communications with consumers regarding non-traditional mortgage products?
8.71- What are Qualified and Non-Qualified Mortgage Programs?
8.72- What are Features of a “qualified mortgage”?
8.73- What are Allowable points and fees for qualified mortgages?
8.74- What Information is used to determine whether a loan is “qualified”?
8.75- What are Annual percentage rates that make a mortgage “qualified”?
8.76- What are Categories of qualified mortgages?
8.77- What is a Non-qualified mortgage (Non-QM)? Explain Features of a non-qualified mortgage? Explain Types of non-qualified mortgages
8.8-Explain Calculation scenarios for loan amounts
8.9-What is the Effect of escrow on mortgage?
(9) Traditional and Non-Traditional Mortgage Products
9.1- What are Traditional and Non-Traditional Mortgage Products?
9.10- What is FHA? What is an “FHA Mortgage”? Explain Facts about FHA loans
9.11- What is VA? What is a VA loan? Explain Facts about VA loans
9.12- Explain Prohibition on mortgage insurance on FHA and VA loans
9.13- How is the interest rate calculated on FHA loan? Explain interest rate calculation scenarios.
9.14- Explain the Types of government guarantors on different loans.
9.15- What is the Definition of “entitlement”?
9.16- What is Certificate eligibility requirement?
9.17- What are Acceptable funds for a down payment/closing costs?
9.18- What Properties are eligible for FHA purchase transactions?
9.19- What are FHA loan limits?
9.2- What are Conventional/conforming (e.g., Fannie Mae, Freddie Mac) loans?
9.20- What are VA funding fees?
9.21- How is the Upfront mortgage insurance premium calculated?
9.22- Explain the Residual income qualification test
9.23- What is the Required documentation?
9.24- Explain the Monthly mortgage insurance payment scenarios
9.25- What is the Minimum down payment for an FHA loan?
9.26- What are Conventional/nonconforming (e.g., Jumbo, Alt-A) loans? Explain Facts on “jumbo loans”
9.27- What is the Definition of “non-conforming” loan? Give some Examples of “non-traditional loans”
9.28- What is an "escrow account"? What are the Requirements for an escrow account associated with a “high priced loan”?
9.29- What are the Requirements for an escrow account associated with a “high cost loan”?
9.3- What are the Responsibilities of Fannie Mae?
9.30- What is Subprime Lending?
9.31- What is Definition of “payment shock”?
9.32- What is Definition of “subprime” loan?
9.33- What are Characteristics of ARM loans?
9.34- Explain "debt-to-income ratio assessment"
9.35- What is credit risk? Give some Examples of credit risk
9.36- Give Scenarios to determine when a balloon loan may be appropriate for a borrower
9.37- What is a subprime borrower? Explain Characteristics of subprime borrowers
9.38- What is a subprime mortgage? What are Characteristics of a subprime mortgage Stated income loans Non-income verifying loans?
9.39- How are consumers Guided on Nontraditional Mortgage Product Risk?
9.4- What are the Limits on closing cost concessions?
9.40- What are Risks of non-traditional mortgage products? How is Re-payment capacity of a borrower identified?
9.41- How is the right non-traditional mortgage product dentified for borrowers?
9.42- What are important Communications with consumers regarding non-traditional mortgage product?
9.43- What are Qualified and Non-Qualified Mortgage Programs?
9.44- What are Features of a “qualified mortgage”?
9.45- What are Allowable points and fees for qualified mortgages?
9.46- What Information is used to determine whether a loan is “qualified”?
9.47- What are Annual percentage rates that make a mortgage “qualified”?
9.48- Explain different Categories of qualified mortgages
9.49- Explain categories and types of Non-qualified mortgage (Non-QM)
9.5- What Fees are charged on loans with certain risk characteristics?
9.50- Explain Features of a non-qualified mortgage
9.6- What are Fannie Mae/Freddie Mac’s automated underwriting systems?
9.7- What are the Requirements when purchasing a non-owner occupied rental property?
9.8- What are Acceptable down payment amounts? What are Hazard insurance requirements?
9.9- What are the Pre-payment requirements, (e.g., FHA, VA, USDA)?
4.16- What is a "Qualified mortgage"?
Mortgage Glossary & Acronyms
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Mortgage in Texas
Uniform Residential Loan Application
Additional Borrower
Continuation Sheet
Lender Loan Information
Section 1 : Borrower Information
Section 2: Financial Information - Assets and Liabilities
Section 3: Financial Information - Real Estate
Section 4: Loan and Property Information
Section 5: Declarations
Section 6: Acknowledgements and Agreements
Section 7: Military Service
Section 8: Demographic Information
Section 9: Loan Originator Information
Unmarried Addendum
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(1) Overview of Mortgage Lending in United States
1.1- The History of the Mortgage Industry in the United States
1.10- What is a Mortgage Investor?
1.11- What is a Mortgage Servicer?
1.12- What is a mortgage underwriter and its Job Description?
1.13- What is a Mortgage Examiner?
1.14- What is a Mortgage Regulator?
1.2- Start of the Mortgage Industry in United States
1.3- Events Leading to the Implementation of the Federal Laws and need for Consumer Protection in the Mortgage Industry
1.4- What is Role of the Mortgage Loan Originator in Consumer Protection.
1.5- What is a Mortgage Loan Originator (MLO) and its Job decsiption
1.6- What is a Mortgage Broker ?
1.7- What is a Mortgage Banker?
1.8- What is a Registered Mortgage Loan Originator (RMLO) and its Job Description?
1.9- What is a mortgage lender/funder ?
(10) Mortgage loan products
10.1- What is a Fixed Mortgage? Explain Characteristics of a fixed-rate mortgage
10.10- Explain Scenarios reflecting payments increasing/decreasing on “change date”
10.11- What is the Timeline for notifying a customer of a rate change?
10.12- Explain Factors when determining interest rates
10.13- How is a borrower’s monthly payment Calculated on Balloon mortgage loan products? Explain Facts about balloon mortgages
10.14- Explain Types of balloon mortgages
10.15- What are Lender requirements on Baloon mortgages? Explain Scenarios to determine when a balloon loan may be appropriate for a borrower
10.16- What is a Reverse mortgage? Explain Facts on reverse mortgages
10.17- Explain Timeline for calculating interest on home equity conversion mortgage loans
10.18- What Payments are required after closing on a conversion mortgage loan?
10.19- What is the Age requirements for conversion mortgages?
10.2- Draw Comparisons of types of loans (scenarios). Explain Situations that affect a fixed rate mortgage payment
10.2- What is the Amount of title insurance required?
10.20- Explain some Facts on “construction-to-permanent” financing programs
10.21- What is the Permissible percentage of total equity allowed for withdrawal?
10.22- Explain Scenarios that cause the full balance to become due
10.22- Explain Scenarios that cause the full balance to become due
10.24- What are "Purchase Money Second Mortgages"? What are required disclosures?
10.25- What is Home Equity Line of Credit (HELOC)? What are the required disclosures?
10.26- Give some Examples of open-ended credit loans
10.27- What is HELOC? Explain Characteristics of a HELOC
10.28- What are Fundamentals of Construction Mortgages?
10.29- What is Definition of “construction loan”? What is the required payment on a construction loan?
10.3- How does the Percentage of pay down impact monthly payments?
10.30- How is the the disclosure of financing classified by the same creditor when constructing a home?
10.31- What is an Interest-only Mortgages? Explain Facts about interest only loans
10.32- Explain facts on interest only payments
10.4- What is a Fixed-rate mortgage loan with escrow?
10.5- What is an Adjustable rate Mortgage? What are Payment options for an adjustable-rate mortgage? Explain Facts on margin with respect to adjustable-rate mortgages
10.6- Explain Facts on the index with respect to adjustable-rate mortgages
10.7- What is the Definition of “fully indexed rate”?
10.8- Give some Examples of adjustable-rate mortgages. Explain some Scenarios resulting in a change in monthly payments and Facts on ARM loans
10.9- Explain Fully indexed rate scenarios
(11) Ethical issues and behavior related to loan origination activities
11.1- What is the Gramm-Leach Bailey Act? What are Prohibited Acts? Explain the consequences of Violations of Gramm-Leach Bliley Act
11.10- What is Coersion? Explain Coercion scenarios
11.11- Explain Scenarios where the appraiser has a conflict of interest
11.12- Explain Discriminating against a loan applicant
11.13- What are the Requirement to treat all applicants with the same level of fairness?
11.14- How is Truth in marketing and advertising conducted?
11.15- Explain Scenarios where information is misleading within an advertisement
11.16- What is Bait and Switch? Give a few Bait and switch scenarios
11.17- What is due deligence? What is the importance of Performing a due diligence review of advertisements prior to publication? Explain Scenarios where “unfair, deceptive, or abusive acts” are undertaken
11.18- Give Examples of lawful advertising. What are Types of advertisements that are subject to federal regulations? What are the Rules surrounding contact (e.g., “Established business relationship”)? What are Permissible statements/phrases within an advertisement?
11.19- How is the Borrower education conducted? How is Fraud detected?
11.2- What is "redlining"? Give Examples of “redlining”
11.20- What is Asset fraud?
11.21- What are Red flags on a sales contract?
11.22- What are red flags on an Application?
11.23- How is fraudulent information verified on a loan application? (Income Fraud, Occupancy Fraud, consumer's bank activity )?
11.24- Explain some General red flags that could represent fraud
11.25- Explain Scenarios surrounding a consumer’s bank activity
11.26- Explain Scenarios where information is not provided to a borrower
11.27- Explain Employment fraud, Liability fraud, Suspicious activity
11.28- What are Permitted fees, payments, and compensation (e.g., Loan Estimate)?
11.29- What are the Fees that may not increase due to changed circumstances ?
11.3- What is RESPA? What are Acceptable/non-acceptable practices under RESPA? Give Examples of prohibited acts
11.30- How are the fees handled based on the Loan Estimate
11.31- Explain Closing cost scenarios
11.32- Explain Settlement scenarios where monies are missing or misused
11.33- Explain Scenarios surrounding referral fees, Splitting fees
11.34- How are consumer complaints handled? What are Mortgage company compliance requirements? What are Acceptable practices when acting on behalf of a lender
11.35- What are Acceptable practices regarding appraisals?
11.36- Explain Scenarios when an MLO discovers material information that should be conveyed to the lender
11.37- Explain Scenarios surrounding the information supplied by employers
11.38- Explain Requirements for MLOs regarding Relationship with consumers, Ethical handling of a customer’s personal information, Down payment scenarios, Interest rate adjustment scenarios, Power of Attorney (POA) scenarios, Permissible reasons for requesting a credit report, Scenarios of notifying the underwriter of a change in the borrower’s application or status
11.39- Explain Proper disclosures by MLOs if there is a potential conflict of interest, Scenarios surrounding situations with borrower’s and co-borrower’s
11.4- What are acceptable Requests for personal information?
11.40- Explain Permissible acts of MLOs regarding the appraisal of a client’s property, Scenarios surrounding situations with borrower’s undisclosed income, Permissible acts after discovering deposits inconsistent with borrower’s income included on application, Scenarios involving a gift received by the borrower,
11.41- Explain Scenarios of notifying a loan officer if a borrower has applied with other companies for additional mortgages, Scenarios surrounding a borrower providing information on income,
11.42- Explain Cybersecurity scenarios , General business ethics, Scenarios where borrower has provided false information, Scenarios where borrower is seeking advice,
11.43- Explain Scenarios where the MLO is falsifying information on behalf of a borrower, Providing suitable unsolicited advice to a borrower, Scenarios where outside parties/individuals to the loan attempt to obtain information on a loan or about a borrower
11.5- What are "kickbacks"? Give some Examples of “kickbacks”
11.6- What are the Duties a loan processor may/may not perform?
11.7- What is Predatory lending and steering?
11.8- Explain "Fairness Lending"
11.9- What is the Definition of a "referral" and the required associated disclosures, and when are they necessary?
(12) SAFE Act and CSBS/ARRMR Model State Law
12.1- What is SAFE Act and CSBS/ARRMR Model State Law ?
12.10- What Persons are required to be licensed ?
12.11- What Services can be conducted by MLOs and the requirement to be licensed ?
12.12- What Entities are required to use MLOs?
12.13- What acts are Allowable by underwriters ? Clerical/support duties, Loan processors ?
12.14- What type of Business individuals may/may not conduct without being licensed as an MLO ? General business, Non-profit institutions, Business purpose loans (e.g., commercial, non-owner)?
12.15- What are Pre-licensing education requirements? Background checks o pther Requirements to becoming an MLO, Managing felony charges, Waiting period for test retakes, Sponsorship requirement,
12.16- Explain an “MLO's” requirement to be licensed with a state, Grounds for State denying a license, Reasons for denying an applicant , License maintenance, Continuing education requirements, Renewal period, License renewal lengths and minimum standards, Continuing education courses approvals, Withholding a record
12.17- Explain Requirements to re-take exam if individual has been absent from industry, Requirement to maintain an active license, Required continuing education hours completed to renew a license
12.18- What are NMLS requirements? Change of employment and updating NMLS, Required submissions that applicants must make to the NMLS, Required disclosures to NMLS, Requirement to publicly display an NMLS identifier, Requirement to include the NMLS identifier in certain situations
12.19- What are Licensed non-depository employees’- vs registered depository employees’ in NMLS? Explain requirement for Compliance, Authority to examine licensee’s books and records, Prohibited conduct and practices
12.2- What are State mortgage regulatory agencies and their regulatory powers?
12.20- What are Prohibited acts ? Explain Requirement to obtain a unique identifier
12.21- How are Investigations by state agencies conducted? What is the Required conduct?
12.22- What Individual is responsible for providing documents during a complaint investigation?
12.23- What is the Required information to be maintained in a loan file?
12.24- What are Assumable mortgage loan products?
12.25- What are Penalties assessed for failure to conduct certain duties ?
12.26- What are Permissible acts? What is the Timeline for submitting books and records to a state regulator?
12.27- Explain General scenarios regarding mortgage loan origination, Required information on loan documents, Record retention requirements, Advertising, and Requirement to include NMLS unique ID in advertisements
12.3- What is CFPB? What is CFPB's authority ?
12.4- What are Continuing education requirements ?
12.5- What are CFPB penalty limits ?
12.6- What is CFPB Loan Originator Rule ?
12.7- What is the Authority of state regulator (e.g., audit)? What are its Responsibilities and limitations
12.8- What Documents are required to be filed for public record?
12.9- Explain License Law and Regulation. What are Minimum requirements for state licensing laws
(2) Regulatory Authorities Overseeing the Mortgage Industry
2.1- What Regulatory Authority Oversees the Mortgage Industry?
2.10- How many housing agencies are required to be listed on the housing counseling disclosure?
2.11- What Types of loans trigger the requirement for a counseling agency to consult with a borrower?
2.12- What Entities does HUD oversees?
2.13- What is the Fair Housing Law Protections (e.g., health status, etc.)
2.2- What is the Consumer Financial Protection Bureau (CFPB)
2.3- How does the Federal Govt. oversee the CFPB?
2.4- What Functions are performed by the CFPB?
2.5- What is the oversight authority of CFPB?
2.6- How are complaints Filed with CFPB?
2.7- What is Department of Housing and Urban Development (HUD)?
2.8- What is the Primary function of HUD?
2.9- What are the Programs offered by HUD?
(3) Federal Mortgage-Related Laws
3.1- What is Real Estate Settlement Procedures Act (RESPA), 12 CFR Part 1024 (Regulation X)
3.10- What steps are required during the foreclosure process?
3.100- What Information must be included on a Closing Disclosure?
3.101- What Information must be disclosed in an annual escrow statement?
3.102- What is the definition of Acceleration?
3.103- Explain The right to receive an appraisal report • Home Mortgage Disclosure Act (HMDA), 12 CFR Part 1003 (Regulation C)
3.104- Explain Mortgages in reportable data
3.105- What is the HMDA definition of “dwelling” ?
3.106- What Information is included in borrower data?
3.107- What is the Information that a borrower must include on an application ?
3.108- What Information an MLO should not inquire?
3.109- Explain Information provided by the borrower regarding the right of refusal • Fair Credit Reporting Act (FCRA)/Fair and Accurate Credit Transactions Act (FACTA) 15 USC § 1681 et seq.
3.11- What is the Initial escrow statements?
3.110- What is the Definition of a “fraud alert”?
3.111- What is the Information included in a “consumer report” ?
3.112- What re Permissible times when a credit report may be accessed?
3.113- What is the Requirement to develop policies and procedures regarding identity theft?
3.114- What is the Definition of “creditor”
3.115- What is the Information included in a FACTA disclosure?
3.116- What is the Length of time a bankruptcy will show on a credit history?
3.117- What are the Credit score evaluation methods • FTC Red Flag rules, 16 CFR Part 681 ?
3.118- What are the Parties subject to “red flag” rules?
3.119- What is the Enforcement authority for “red flag” rules • Bank Secrecy Act/Anti-Money Laundering (BSA/AML) ?
3.12- What Changes can be made to the HUD-1/Good Faith Estimate?
3.120- What are the Requirement that companies protect consumer information?
3.121- What are the Facts about Suspicious Activity Reports (SARs) ?
3.122- What are the Circumstances that require filing a SAR?
3.123- What are SAR privacy requirements• Gramm-Leach-Bliley Act (GLB) – Privacy, FTC Safeguard Rules and Do Not Call ?
3.124- What is on-public information regarding a customer?
3.125- What is Permissible use of non-public information regarding a customer?
3.126- What is the Purpose of Act
3.127- What is the Requirement for written privacy policy disclosures ?
3.128- What are Acceptable delivery methods for a privacy notice?
3.129- What are Permissible hours for telephone calls ?
3.13- What is the Equal Credit Opportunity Act (ECOA), 12 CFR Part 1002 (Regulation B)?
3.13- What is the process of Issuing a Good Faith Estimate when all the information has not been provided?
3.130- What is the requirement for Written policies for maintaining Do-Not-Call lists?
3.131- What Precautions should be taken to protect customer information?
3.132- What is the Purpose of the National Do-Not-Call Registry ?
3.133- What are Permissible solicitation scenarios?
3.134- How should a Do-Not-Call request be handled?
3.135- Retention of information after a solicitation • Mortgage Acts and Practices – Advertising, 12 CFR Part 1014 (Regulation N)
3.136- What is the requirement for Advertisements referring to specific credit terms?
3.137- What is the Length of time required to retain advertisements ?
3.138- What Information is required to be included in an advertisement?
3.139- What are the Triggering terms that require additional disclosure?
3.14- What Factors cannot be used to discriminate?
3.140- What is the Violations of the Act • Electronic Signature in Global and National Commerce Act (E-SIGN Act) ?
3.141- What are the Required ESIGN disclosures?
3.142- How is the Borrower’s consent obtained regarding access to information in electronic format?
3.143- What are the Requirements for maintaining records in electronic format?
3.144- What are the Ways to verify a borrower’s identity • USA PATRIOT Act?
3.145- What is the Primary purpose of the Act?
3.146- What are the Major functions of the Act?
3.147- What is the Confidential nature of filing reports ?
3.148- What are the Ways to verify a borrower’s identity?
3.149- What Parties are subject to the Act?
3.15- How is the borrower notified of action taken?
3.150- What is the Requirement to have a Customer Identification Program in place and verifying the identities of borrowers • Homeowners’ Protection Act (Private Mortgage Insurance (PMI) Cancellation Act)?
3.151- What are the Major functions of the Act?
3.152- What Documents must be provided to a borrower at loan consummation • Dodd-Frank Act ?
3.153- What are the Re-financing situations?
3.154- Explain Law oversight over TRID
3.155- What are the Independent appraisal requirements ?
3.16- What are General permissible acts under the Equal Credit Opportunity Act?
3.17- Under what Circumstances is it acceptable to deny credit/loan?
3.18- Components of a “notice of adverse action”
3.19- What is the Definition of “adverse action”
3.2 What is the origin and purpose of RESPA?
3.20- What are the General provisions of Regulation B ?
3.21- What are the Exceptions to providing the appraisal report?
3.22- What are “Prohibited Factors” ?
3.23- What are Required disclosures when an application is denied?
3.24- What Acceptable terms can be used to describe marital status?
3.25- What procedure should be adopted to issue an Adverse action notice, including when multiple applicants/guarantors are on the loan request?
3.26- What is the Definition of “elderly” ?
3.27- What are “Disparate treatment” scenarios?
3.28- What are Record retention timelines?
3.29- What are the Requirement for a co-signer?
3.3- What are the prohibitions, limitations and exemptions set by RESPA
3.30- What Factors are considered when determining creditworthiness?
3.31- What are the Types of acceptable income considered during a loan review?
3.32- How is a Request for missing application information made and communicated?
3.33- Explain Adverse action scenarios
3.34- Information required on a loan application
3.35- What are the charecteristics of Adverse action?
3.36- What is the required Timeframe for sending an adverse action to an applicant?
3.37- What are the Actions an MLO should take when a borrower refuses to provide ethnic, race or gender information • Truth-in-Lending Act (TILA), 12 CFR Part 1026 (Regulation Z) ?
3.38- What is “Notice of right to rescind” ?
3.39- What are Permissible fees and finance charges?
3.4- What Types of loans is RESPA applicable to?
3.40- What are guidelines and requirements for Advertisement?
3.41- What is the core concepts of the Truth-in-Lending Act?
3.42- What is Total points and fee threshold?
3.43- What is the Definition of “finance charge” ?
3.44- What is the Definition of “annual percentage rate” ?
3.45- What Loans are covered by the Truth-in-Lending Act?
3.46- What is the Definition of a “business day”?
3.47- What are Permissible annual percentage rate tolerances?
3.48- What is the Definition of “dwelling”
3.49- What is the Definition of “residential mortgage loan”
3.5- What are Settlement services ?
3.50- What is the Definition of “business day” in a mortgage rescission
3.51- What are Record retention timeframes?
3.52- How are “seller contributions” Classified?
3.53- What are Refinancing scenarios with rights to rescind certain types of transactions • Home Ownership and Equity Protection Act – High-Cost Mortgage, HOEPA Sections 32 and 12 CFR Part 1026 ?
3.54- What is Minimum term for a balloon payment?
3.55- What are Examples of “covered loans” ?
3.56- What is allowed under HOEPA
3.57- What are the Limitations on broker fees?
3.58- What is the Entity that enforces HOEPA?
3.59- What Types of loans/lines of credit are subject to HOEPA • Higher Priced Mortgage Loans (12 CFR 1026.35) ?
3.6- What disclosures is required to the customer for an MLO who is also a broker?
3.60- What is the Definition of “high priced/cost mortgage”?
3.62- What are the Prohibitions within “high priced” mortgages?
3.63- Explain Loan Originator Compensation relating to Refinance mortgage loans • (12 CFR 1026.36(d)) ?
3.64- What is the compensation of MLO based upon?
3.65- What are the The rules for who may compensate an MLO • TILA-RESPA Integrated Disclosure Rule (TRID) (a.k.a “Know Before You Owe”) ?
3.66- What are the Prohibitions on discrimination?
3.67- What are the timeframes on Disclosure?
3.68- What is the Section on disclosure where origination charges are reflected?
3.69- What is the Affiliated Business Disclosure Special Information Booklet?
3.7- What are Bona fide discount points and its application during a mortgage loan origination?
3.70- Where is the Borrower information included on Regulation Z?
3.8- What information is Required from a borrower that must be included on an application (Regulation X)?
3.80- What is the Record retention?
3.81- What are the Required disclosures ?
3.82- What is the Timing of disclosures provided to an applicant?
3.83- What are the Types of permissible fees and finance charges?
3.84- What are the Circumstances under which a Loan Estimate may be amended?
3.85- Explain General information about the TILA-RESPA Disclosure Rule
3.86- What are Examples of “change of circumstance”?
3.87- What is the Borrower information that is included on an application?
3.88- What is the Information that must be disclosed to consumers upon request ?
3.89- What is an annual percentage rate?
3.9- What is the role and function of third party settlement service providers
3.90- What Party is required to provide the Loan Estimate?
3.91- What Types of loans are covered under TILA?
3.92- What Actions an MLO must take when there is incomplete information on a TRID disclosure?
3.93- Explain a Scenario in violations of TRID
3.94- What is A borrower’s right to rescission?
3.95 What is the Definition of loan consummation?
3.96- What is Information that must be disclosed on a Loan Estimate?
3.97- Explain the Facts about Loan Estimate
3.98- What are the requirements regarding Informing a borrower of other loan considerations?
3.99- How are the Charges/fees disclosed?
(4) Loan Origination Activities
4.1- What are "Junior liens"?
4.10- What is a "Delinquent loan"?
4.11- What are "High cost loans"?
4.12- What is "Early payment default"?
4.13- What are "Yield spread premiums"?
4.14- What is "High interest rates"?
4.15- What are "Federal mortgage loans"
4.17- What are "Servicing transfers"?
4.18- What are "Lender credits"?
4.19- What are "Discount points"?
4.2- What are "Subordinate loans"?
4.20- What is "2-1 Buy-down"?
4.21- What is "Accrued interest"?
4.22- What is "Loan-to-value ratio"?
4.23- What is "Settlement"?
4.24- What is "Finance charges"?
4.25- What is a "Loan discount point"?
4.26- What is Debt ratio?
4.27- What is "Daily simple interest"?
4.28- What is "Premium pricing"?
4.28- What is "Premium pricing"?
4.29- What is "Lender credit"?
4.3- What are "Escrow accounts"?
4.30- What is "Subordination"?
4.31- What is "Conveyance"?
4.32- What is "Cash out refinance"?
4.33- What are "Pre-paids"?
4.34- What is "Underwriting"?
4.35- What is "Secondary market"?
4.36- What is "Third party providers"?
4.37- What is "Primary mortgage market"?
4.38- What are "Non-traditional mortgages"?
4.39- What is "Consumer Credit"?
4.4- What are "High priced mortgages"?
4.40- What is "Loan payment collection"?
4.41- What is "Assumable loan"?
4.42- What are Examples of origination service?
4.43- What is "Assigned loan"?
4.44- What is "Payment shock"?
4.45- What is "Annual Percentage Rate (APR)"?
4.46- What s "Average Prime Offer Rate (APOR)"?
4.5- What is "Table funding Rate lock agreement"?
4.6- What are "Tolerances"?
4.7- What is "Legal title granted via a mortgage"?
4.8- What Types of mortgages a lender cannot be forced to repurchase?
4.9- What are "Facts on liens"?
(5) Loan Inquiry and Application Process Requirements (1003)
5.1- What Information is required on Form 1003?
5.10- What are the Questions on a Borrower Application?
5.11- How do MLOs accept loan applications?
5.12- What is the process of Offering and negotiating the terms of a loan?
5.13- How information on an application is managed by MLO?
5.14- What Service charges are subject to 10% tolerance?
5.15- How is the information on documentation verified?
5.16- What Forms are used to authorize the release of information?
5.17- What are the Methods of verifying income and assets?
5.18- What Percentage of bank account assets are attributable toward a loan application?
5.19- What are Methods of verifying employment?
5.2- What Percentage of bank account assets are attributable toward a loan application?
5.20- How is Suitability of products and programs matched to applicant?
5.21- How is the suitable type of loan on a mortgage application reflected and disclosed? What disclosure is required and how is it communicated?
5.22- What Information is included in the Truth-in-Lending disclosure
5.23- How are Disclosures on Loan Estimates provided?
5.24- What are Adjustable-rate mortgage loan disclosures and how are they disclosed?
5.25- What is the Consumer Handbook on ARMs (Charm booklet)? and how is it disclosed?
5.26- How are Reverse mortgages communicated and disclosed with Accuracy (e.g., tolerances)?
5.27- What are different Scenarios attributed to allowable tolerance?
5.28- What Service charges are subject to a 10% tolerance and their Timing?
5.29- Explain "Timing of notification of action taken"
5.3- How is credit Handled?
5.30- Explain "Timing of early disclosures and Loan Estimate"?
5.31- What is the Timeline of when a Loan Estimate must be provided?
5.32- Explain Expiration of charges and terms in a Loan Estimate and timings?
5.33- Explain the concept of process "Time from Loan Estimate to loan consummation"
5.34- What are Exceptions to providing the Loan Estimate?
5.35- How is a Loan Estimate reissued?
5.36- What is Time period for the delivery of the Affiliated Business Disclosure?
5.37- What is Time period for the delivery of the Special Information Booklet (Know Before You Owe)?
5.38- What is the Time frame for the consideration for settlement charge before the expiration?
5.39- What is the Timing for reissuing Loan Estimates?
5.4- How are discrepancies reported?
5.40- What is the Timeline of the initial Loan Estimate disclosure?
5.41- What is the Timing of providing the appraisal report?
5.42- What is the Timing and time line for tolerance corrections , i.e Sending a list of counseling services
5.43- How is Shopping conducted? How are Valid reasons for a Change in Circumstance communicated? Explain acceptable Delivery Method and process. Explain the communication methods, Electronic, Face-to-Face and Standard Mail
5.44- Explain significance of Overnight Delivery of Closing Disclosure
5.45- When are loan applicants entitled to advance inspection of a closing "documents"?
5.46- What is Initial Closing Disclosure?
5.47- Explain the Timing of Disclosures
5.48- What is Final Closing Disclosure?
5.49- What is the Time frame of providing an updated closing disclosure?
5.5- Who are Acceptable gift donors?
5.50- What is the Definition of a business day for delivery purposes and explain Homeownership Counseling Disclosure
5.6- What is Loan Inquiry Process?
5.7- What are Required disclosures that must be provided to a borrower in response to a loan inquiry?
5.8- What accurate information is required on an application (e.g., name, SSN, address of property to be financed, estimated property value, income, loan amount)?
5.9- What are the Permissible questions on an application and what is the Application Process?
(6) Loan Qualification Requirements, Processing, and Underwriting
6.1- During Borrower analysis, what are Acceptable assets that may be used for a down payment?
6.10- Can Social security and/or disability income be applied toward a loan analysis or as qualifying income?
6.11- What Documentation is required for work history and income when there has been an absence in employment over 3 years?
6.12- How is monthly income Calculated?
6.13- What Information is included on a credit report?
6.14- What Factors are used in determining a credit score?
6.15- What are Qualifying ratios? What is the Definition of “capacity”?
6.16- What Factors are considered when calculating the expense-to-income ratio and how is it calculated?
6.17- What factors are considered when calculating Loan to value ratios and how is it calculated?
6.18- How is the debt-to-income ratio Calculated?
6.19- How is the housing to income ratio Calculated?
6.2- During Borrower Analysis, how are Assets Classified (Types of asset classifications)?
6.20- How is the total debt ratio calculated?
6.21- What are the Factors taken into consideration when reviewing an applicant’s ability to repay a loan?
6.22- What are the Methods of verifying income/assets?
6.23- How is a borrower’s ability to repay the loan determined?
6.24- What is the Allowable debt to income ratio at loan consummation?
6.25- What are Safe harbor provisions and scenarios?
6.26- Explain Ability to repay scenarios
6.27- Explain Tangible net benefit
6.28- What are different occupancy types?
6.29- Explain Verification of Deposit scenarios
6.3- During Borrower Analysis, what Assets are permissible to be used toward reserve funds?
6.30- What is the Purpose of appraisals?
6.31- What is "Market approach"?
6.32- What is "Income approach"?
6.33- What is "Cost approach"?
6.34- What is "Market data approach"?
6.35- How is comparable information used to establish values?
6.36- What is the Requirement/timeline to inform applicant of the right to receive an appraisal?
6.37- Explain Facts on appraisals?
6.38- What is the Definition of “appraisal”?
6.39- What is Appraisal requirement with a high-risk mortgage?
6.4- During Borrower analysis, what Actions are not permitted with respect to Verification of Deposits?
6.40- What is the Definition of “appraiser”?
6.41- What is a Title report and how are title reports obtained?
6.42- What are the Timings of title reports and its commitments
6.43- What is the Preliminary Title Reports Cost approach?
6.44- What is the significance of Flood Zone and explain the requirements of Flood Insurance for specific properties in the flood zone?
6.45- What limits are mandatory for flood coverage and how are they determined?
6.46- What is Private Mortgage Insurance and the Purpose? What are the Benefits of private mortgage insurance? Explain Facts on private mortgage insurance and ratios?
6.47- What are Requirement guidelines to ending private mortgage insurance?
6.48- What is Loan to value ratio that triggers private mortgage insurance ?
6.49- What is Hazard/Homeowner Insurance? What is Forced-placed insurance?
6.5- What type and how are Liabilities listed on a loan application?
6.6- Explain Types of liabilities
6.7- For verification of Income, what Documentation is required for a self-employed applicant?
6.8- How is Capital Gains Income Utilized on a loan application?
6.9- What Types of income are acceptable and applicable for qualification of a loan?
(7) Closing
7.1- What is Title and title insurance? What is the coverage of Title insurance?
7.10- What is the process of proper Explanation of Fees/charges listed on HUD-1 Settlement Statement, Title insurance fees, Pre-paid fees, Types of escrow expenses.
7.11- What are examples of Origination fees?
7.12- What are Loan origination fees?
7.13- What documents are required at a closing?
7.14- What documents are Required that pertain to the specifics when using a property as collateral?
7.15- What document pertains to "Note disclosures on a loan" and what is its significance?
7.16- What are the "Assumption clauses"?
7.17- What is the "escrow analysis statement" ?
7.18- Explain the "Funding" and the document that pertains specifically to funding.
7.19- What is a rescission period and when does it end?
7.2- Explain Priority in multiple mortgage scenarios
7.20- Explain Funding regarding rescission period.
7.3- What is the Definition of “easement”?
7.4- What are Encumbrances?
7.5- What is Reconveyance?
7.6- What is a Settlement/Closing agent?
7.7- Explain Borrower/Seller’s ability to review the HUD-1 Settlement Statement?
7.8- What is the significance and process of obtaining Eligible signatures on the security instrument?
7.9- Explain the proper Use of a Power of Attorney (POA)
(8) Financial Calculations/Mortgage Math/APR
8.1- What is "Periodic Interest"?
8.10-Explain the Order of payments and importance of payments to the underwriting of loan
8.11-What is Closing Disclosure information?
8.12-Explain Down Payments
8.13-How is the down payment amounts/percentages calculated?
8.14-What is Loan-to-value ratios?
8.15-Explain Loan-to-value ratio calculation scenarios
8.16-What is Debt-to-income ratios?
8.17-Explain Debt ratio calculation scenarios
8.18-What Factors are taken into account in calculating debt ratios?
8.19-What are Discount Points?
8.2-Explain "Interest rate calculation scenarios".
8.20- What is "Fixed interest rate buy-downs"?
8.21- What is "Permanent note"?
8.22- What is the Definition of “discount point”? Explain Discount point calculation scenarios. Explain Purpose of discount points
8.23- What is Closing costs and prepaid items? Explain Closing costs/pre-paid items calculation scenarios
8.24- How is Hazard insurance collected?
8.25- Explain ARMs (e.g., fully indexed rate)
8.26- Explain "Interest rate adjustment calculation scenarios"
8.27- Explain Payment adjustment calculation scenarios
8.28- Explain Qualified Mortgage monthly payment calculations
8.29- How is the debt to income ratio calculated on Traditional and Non-Traditional Mortgage Products?
8.3-Explain the General facts
8.30- What is Fannie Mae and what are its Responsibilities? What are the Limits on closing cost concessions?
8.31- What are the Fee charges on loans with certain risk characteristics?
8.32- Explain the Fannie Mae/Freddie Mac’s automated underwriting systems
8.33- What are the Requirements when purchasing a non-owner occupied rental property? What are the Acceptable down payment amounts?
8.34- What are Hazard insurance requirements?
8.35- What are the Pre-payment requirements? (e.g., FHA, VA, USDA)?
8.36- What is the Definition of “FHA Mortgage”? Explain Facts about FHA loans
8.37- What is a VA loan? Facts about VA loans
8.38- Explain Prohibition on mortgage insurance on certain loan types
8.39- Explain FHA interest rate calculation scenarios
8.4-Explain "Interests per diem facts"
8.40- What are the different Types of government guarantors?
8.41- What is Definition of “entitlement”?
8.42- What is the "Certificate eligibility requirement"?
8.43- What are Acceptable funds for a down payment/closing costs?
8.44- What Properties are eligible for FHA purchase transactions?
8.45- What are FHA loan limits?
8.46- Explain "VA funding fees".
8.47- What is Upfront mortgage insurance premiums?
8.48- How is the "Residual income qualification test" conducted?
8.49- What is the Required documentation?
8.5-Explain different Calculation scenarios for mortgage insurance
8.50- Explain the Monthly mortgage insurance payment scenarios
8.51- What is the Minimum down payment for an FHA loan?
8.52- What is the Conventional/nonconforming (e.g., Jumbo, Alt-A) loan? Explain Facts on “jumbo loans”
8.53- What is the Definition of “non-conforming” loan? Give Examples of “non-traditional loans”.
8.54- What are the Requirements for an escrow account associated with a “high priced loan”?
8.54- What are the Requirements for an escrow account associated with a “high priced loan”?
8.56- Explain Statement on Subprime Lending
8.57- What is the Definition of “payment shock” ?
8.58- Definition of “subprime” mortgage or loan?
8.59- Explain Characteristics of ARM loans?
8.6-Explain Calculation scenarios for interest rates
8.60- What is Definition of a debt-to-income ratio assessment?
8.61- What are Examples of credit risk characteristics ?
8.62- Give some Scenarios to determine when a balloon loan may be appropriate for a borrower
8.63- What are the Characteristics of subprime borrowers ?
8.64- What are the Characteristics of a subprime mortgage Stated income loans Non-income verifying loans?
8.65- How are borrowers Guided on Nontraditional Mortgage Product Risks?
8.66- What are Characteristics of a non-traditional mortgage loan?
8.67- What are Risks of non-traditional mortgage products?
8.68- What is "Re-payment capacity of a borrower"?
8.69- How is the the right non-traditional mortgage product for borrowers selected?
8.7-Explain Calculation scenarios for monthly payments
8.70- What are important required Communications with consumers regarding non-traditional mortgage products?
8.71- What are Qualified and Non-Qualified Mortgage Programs?
8.72- What are Features of a “qualified mortgage”?
8.73- What are Allowable points and fees for qualified mortgages?
8.74- What Information is used to determine whether a loan is “qualified”?
8.75- What are Annual percentage rates that make a mortgage “qualified”?
8.76- What are Categories of qualified mortgages?
8.77- What is a Non-qualified mortgage (Non-QM)? Explain Features of a non-qualified mortgage? Explain Types of non-qualified mortgages
8.8-Explain Calculation scenarios for loan amounts
8.9-What is the Effect of escrow on mortgage?
(9) Traditional and Non-Traditional Mortgage Products
9.1- What are Traditional and Non-Traditional Mortgage Products?
9.10- What is FHA? What is an “FHA Mortgage”? Explain Facts about FHA loans
9.11- What is VA? What is a VA loan? Explain Facts about VA loans
9.12- Explain Prohibition on mortgage insurance on FHA and VA loans
9.13- How is the interest rate calculated on FHA loan? Explain interest rate calculation scenarios.
9.14- Explain the Types of government guarantors on different loans.
9.15- What is the Definition of “entitlement”?
9.16- What is Certificate eligibility requirement?
9.17- What are Acceptable funds for a down payment/closing costs?
9.18- What Properties are eligible for FHA purchase transactions?
9.19- What are FHA loan limits?
9.2- What are Conventional/conforming (e.g., Fannie Mae, Freddie Mac) loans?
9.20- What are VA funding fees?
9.21- How is the Upfront mortgage insurance premium calculated?
9.22- Explain the Residual income qualification test
9.23- What is the Required documentation?
9.24- Explain the Monthly mortgage insurance payment scenarios
9.25- What is the Minimum down payment for an FHA loan?
9.26- What are Conventional/nonconforming (e.g., Jumbo, Alt-A) loans? Explain Facts on “jumbo loans”
9.27- What is the Definition of “non-conforming” loan? Give some Examples of “non-traditional loans”
9.28- What is an "escrow account"? What are the Requirements for an escrow account associated with a “high priced loan”?
9.29- What are the Requirements for an escrow account associated with a “high cost loan”?
9.3- What are the Responsibilities of Fannie Mae?
9.30- What is Subprime Lending?
9.31- What is Definition of “payment shock”?
9.32- What is Definition of “subprime” loan?
9.33- What are Characteristics of ARM loans?
9.34- Explain "debt-to-income ratio assessment"
9.35- What is credit risk? Give some Examples of credit risk
9.36- Give Scenarios to determine when a balloon loan may be appropriate for a borrower
9.37- What is a subprime borrower? Explain Characteristics of subprime borrowers
9.38- What is a subprime mortgage? What are Characteristics of a subprime mortgage Stated income loans Non-income verifying loans?
9.39- How are consumers Guided on Nontraditional Mortgage Product Risk?
9.4- What are the Limits on closing cost concessions?
9.40- What are Risks of non-traditional mortgage products? How is Re-payment capacity of a borrower identified?
9.41- How is the right non-traditional mortgage product dentified for borrowers?
9.42- What are important Communications with consumers regarding non-traditional mortgage product?
9.43- What are Qualified and Non-Qualified Mortgage Programs?
9.44- What are Features of a “qualified mortgage”?
9.45- What are Allowable points and fees for qualified mortgages?
9.46- What Information is used to determine whether a loan is “qualified”?
9.47- What are Annual percentage rates that make a mortgage “qualified”?
9.48- Explain different Categories of qualified mortgages
9.49- Explain categories and types of Non-qualified mortgage (Non-QM)
9.5- What Fees are charged on loans with certain risk characteristics?
9.50- Explain Features of a non-qualified mortgage
9.6- What are Fannie Mae/Freddie Mac’s automated underwriting systems?
9.7- What are the Requirements when purchasing a non-owner occupied rental property?
9.8- What are Acceptable down payment amounts? What are Hazard insurance requirements?
9.9- What are the Pre-payment requirements, (e.g., FHA, VA, USDA)?
4.16- What is a "Qualified mortgage"?
Mortgage Glossary & Acronyms
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Lender Loan Information
Section 1 : Borrower Information
Section 2: Financial Information - Assets and Liabilities
Section 3: Financial Information - Real Estate
Section 4: Loan and Property Information
Section 5: Declarations
Section 6: Acknowledgements and Agreements
Section 7: Military Service
Section 8: Demographic Information
Section 9: Loan Originator Information
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(1) Overview of Mortgage Lending in United States
1.1- The History of the Mortgage Industry in the United States
1.10- What is a Mortgage Investor?
1.11- What is a Mortgage Servicer?
1.12- What is a mortgage underwriter and its Job Description?
1.13- What is a Mortgage Examiner?
1.14- What is a Mortgage Regulator?
1.2- Start of the Mortgage Industry in United States
1.3- Events Leading to the Implementation of the Federal Laws and need for Consumer Protection in the Mortgage Industry
1.4- What is Role of the Mortgage Loan Originator in Consumer Protection.
1.5- What is a Mortgage Loan Originator (MLO) and its Job decsiption
1.6- What is a Mortgage Broker ?
1.7- What is a Mortgage Banker?
1.8- What is a Registered Mortgage Loan Originator (RMLO) and its Job Description?
1.9- What is a mortgage lender/funder ?
(10) Mortgage loan products
10.1- What is a Fixed Mortgage? Explain Characteristics of a fixed-rate mortgage
10.10- Explain Scenarios reflecting payments increasing/decreasing on “change date”
10.11- What is the Timeline for notifying a customer of a rate change?
10.12- Explain Factors when determining interest rates
10.13- How is a borrower’s monthly payment Calculated on Balloon mortgage loan products? Explain Facts about balloon mortgages
10.14- Explain Types of balloon mortgages
10.15- What are Lender requirements on Baloon mortgages? Explain Scenarios to determine when a balloon loan may be appropriate for a borrower
10.16- What is a Reverse mortgage? Explain Facts on reverse mortgages
10.17- Explain Timeline for calculating interest on home equity conversion mortgage loans
10.18- What Payments are required after closing on a conversion mortgage loan?
10.19- What is the Age requirements for conversion mortgages?
10.2- Draw Comparisons of types of loans (scenarios). Explain Situations that affect a fixed rate mortgage payment
10.2- What is the Amount of title insurance required?
10.20- Explain some Facts on “construction-to-permanent” financing programs
10.21- What is the Permissible percentage of total equity allowed for withdrawal?
10.22- Explain Scenarios that cause the full balance to become due
10.22- Explain Scenarios that cause the full balance to become due
10.24- What are "Purchase Money Second Mortgages"? What are required disclosures?
10.25- What is Home Equity Line of Credit (HELOC)? What are the required disclosures?
10.26- Give some Examples of open-ended credit loans
10.27- What is HELOC? Explain Characteristics of a HELOC
10.28- What are Fundamentals of Construction Mortgages?
10.29- What is Definition of “construction loan”? What is the required payment on a construction loan?
10.3- How does the Percentage of pay down impact monthly payments?
10.30- How is the the disclosure of financing classified by the same creditor when constructing a home?
10.31- What is an Interest-only Mortgages? Explain Facts about interest only loans
10.32- Explain facts on interest only payments
10.4- What is a Fixed-rate mortgage loan with escrow?
10.5- What is an Adjustable rate Mortgage? What are Payment options for an adjustable-rate mortgage? Explain Facts on margin with respect to adjustable-rate mortgages
10.6- Explain Facts on the index with respect to adjustable-rate mortgages
10.7- What is the Definition of “fully indexed rate”?
10.8- Give some Examples of adjustable-rate mortgages. Explain some Scenarios resulting in a change in monthly payments and Facts on ARM loans
10.9- Explain Fully indexed rate scenarios
(11) Ethical issues and behavior related to loan origination activities
11.1- What is the Gramm-Leach Bailey Act? What are Prohibited Acts? Explain the consequences of Violations of Gramm-Leach Bliley Act
11.10- What is Coersion? Explain Coercion scenarios
11.11- Explain Scenarios where the appraiser has a conflict of interest
11.12- Explain Discriminating against a loan applicant
11.13- What are the Requirement to treat all applicants with the same level of fairness?
11.14- How is Truth in marketing and advertising conducted?
11.15- Explain Scenarios where information is misleading within an advertisement
11.16- What is Bait and Switch? Give a few Bait and switch scenarios
11.17- What is due deligence? What is the importance of Performing a due diligence review of advertisements prior to publication? Explain Scenarios where “unfair, deceptive, or abusive acts” are undertaken
11.18- Give Examples of lawful advertising. What are Types of advertisements that are subject to federal regulations? What are the Rules surrounding contact (e.g., “Established business relationship”)? What are Permissible statements/phrases within an advertisement?
11.19- How is the Borrower education conducted? How is Fraud detected?
11.2- What is "redlining"? Give Examples of “redlining”
11.20- What is Asset fraud?
11.21- What are Red flags on a sales contract?
11.22- What are red flags on an Application?
11.23- How is fraudulent information verified on a loan application? (Income Fraud, Occupancy Fraud, consumer's bank activity )?
11.24- Explain some General red flags that could represent fraud
11.25- Explain Scenarios surrounding a consumer’s bank activity
11.26- Explain Scenarios where information is not provided to a borrower
11.27- Explain Employment fraud, Liability fraud, Suspicious activity
11.28- What are Permitted fees, payments, and compensation (e.g., Loan Estimate)?
11.29- What are the Fees that may not increase due to changed circumstances ?
11.3- What is RESPA? What are Acceptable/non-acceptable practices under RESPA? Give Examples of prohibited acts
11.30- How are the fees handled based on the Loan Estimate
11.31- Explain Closing cost scenarios
11.32- Explain Settlement scenarios where monies are missing or misused
11.33- Explain Scenarios surrounding referral fees, Splitting fees
11.34- How are consumer complaints handled? What are Mortgage company compliance requirements? What are Acceptable practices when acting on behalf of a lender
11.35- What are Acceptable practices regarding appraisals?
11.36- Explain Scenarios when an MLO discovers material information that should be conveyed to the lender
11.37- Explain Scenarios surrounding the information supplied by employers
11.38- Explain Requirements for MLOs regarding Relationship with consumers, Ethical handling of a customer’s personal information, Down payment scenarios, Interest rate adjustment scenarios, Power of Attorney (POA) scenarios, Permissible reasons for requesting a credit report, Scenarios of notifying the underwriter of a change in the borrower’s application or status
11.39- Explain Proper disclosures by MLOs if there is a potential conflict of interest, Scenarios surrounding situations with borrower’s and co-borrower’s
11.4- What are acceptable Requests for personal information?
11.40- Explain Permissible acts of MLOs regarding the appraisal of a client’s property, Scenarios surrounding situations with borrower’s undisclosed income, Permissible acts after discovering deposits inconsistent with borrower’s income included on application, Scenarios involving a gift received by the borrower,
11.41- Explain Scenarios of notifying a loan officer if a borrower has applied with other companies for additional mortgages, Scenarios surrounding a borrower providing information on income,
11.42- Explain Cybersecurity scenarios , General business ethics, Scenarios where borrower has provided false information, Scenarios where borrower is seeking advice,
11.43- Explain Scenarios where the MLO is falsifying information on behalf of a borrower, Providing suitable unsolicited advice to a borrower, Scenarios where outside parties/individuals to the loan attempt to obtain information on a loan or about a borrower
11.5- What are "kickbacks"? Give some Examples of “kickbacks”
11.6- What are the Duties a loan processor may/may not perform?
11.7- What is Predatory lending and steering?
11.8- Explain "Fairness Lending"
11.9- What is the Definition of a "referral" and the required associated disclosures, and when are they necessary?
(12) SAFE Act and CSBS/ARRMR Model State Law
12.1- What is SAFE Act and CSBS/ARRMR Model State Law ?
12.10- What Persons are required to be licensed ?
12.11- What Services can be conducted by MLOs and the requirement to be licensed ?
12.12- What Entities are required to use MLOs?
12.13- What acts are Allowable by underwriters ? Clerical/support duties, Loan processors ?
12.14- What type of Business individuals may/may not conduct without being licensed as an MLO ? General business, Non-profit institutions, Business purpose loans (e.g., commercial, non-owner)?
12.15- What are Pre-licensing education requirements? Background checks o pther Requirements to becoming an MLO, Managing felony charges, Waiting period for test retakes, Sponsorship requirement,
12.16- Explain an “MLO's” requirement to be licensed with a state, Grounds for State denying a license, Reasons for denying an applicant , License maintenance, Continuing education requirements, Renewal period, License renewal lengths and minimum standards, Continuing education courses approvals, Withholding a record
12.17- Explain Requirements to re-take exam if individual has been absent from industry, Requirement to maintain an active license, Required continuing education hours completed to renew a license
12.18- What are NMLS requirements? Change of employment and updating NMLS, Required submissions that applicants must make to the NMLS, Required disclosures to NMLS, Requirement to publicly display an NMLS identifier, Requirement to include the NMLS identifier in certain situations
12.19- What are Licensed non-depository employees’- vs registered depository employees’ in NMLS? Explain requirement for Compliance, Authority to examine licensee’s books and records, Prohibited conduct and practices
12.2- What are State mortgage regulatory agencies and their regulatory powers?
12.20- What are Prohibited acts ? Explain Requirement to obtain a unique identifier
12.21- How are Investigations by state agencies conducted? What is the Required conduct?
12.22- What Individual is responsible for providing documents during a complaint investigation?
12.23- What is the Required information to be maintained in a loan file?
12.24- What are Assumable mortgage loan products?
12.25- What are Penalties assessed for failure to conduct certain duties ?
12.26- What are Permissible acts? What is the Timeline for submitting books and records to a state regulator?
12.27- Explain General scenarios regarding mortgage loan origination, Required information on loan documents, Record retention requirements, Advertising, and Requirement to include NMLS unique ID in advertisements
12.3- What is CFPB? What is CFPB's authority ?
12.4- What are Continuing education requirements ?
12.5- What are CFPB penalty limits ?
12.6- What is CFPB Loan Originator Rule ?
12.7- What is the Authority of state regulator (e.g., audit)? What are its Responsibilities and limitations
12.8- What Documents are required to be filed for public record?
12.9- Explain License Law and Regulation. What are Minimum requirements for state licensing laws
(2) Regulatory Authorities Overseeing the Mortgage Industry
2.1- What Regulatory Authority Oversees the Mortgage Industry?
2.10- How many housing agencies are required to be listed on the housing counseling disclosure?
2.11- What Types of loans trigger the requirement for a counseling agency to consult with a borrower?
2.12- What Entities does HUD oversees?
2.13- What is the Fair Housing Law Protections (e.g., health status, etc.)
2.2- What is the Consumer Financial Protection Bureau (CFPB)
2.3- How does the Federal Govt. oversee the CFPB?
2.4- What Functions are performed by the CFPB?
2.5- What is the oversight authority of CFPB?
2.6- How are complaints Filed with CFPB?
2.7- What is Department of Housing and Urban Development (HUD)?
2.8- What is the Primary function of HUD?
2.9- What are the Programs offered by HUD?
(3) Federal Mortgage-Related Laws
3.1- What is Real Estate Settlement Procedures Act (RESPA), 12 CFR Part 1024 (Regulation X)
3.10- What steps are required during the foreclosure process?
3.100- What Information must be included on a Closing Disclosure?
3.101- What Information must be disclosed in an annual escrow statement?
3.102- What is the definition of Acceleration?
3.103- Explain The right to receive an appraisal report • Home Mortgage Disclosure Act (HMDA), 12 CFR Part 1003 (Regulation C)
3.104- Explain Mortgages in reportable data
3.105- What is the HMDA definition of “dwelling” ?
3.106- What Information is included in borrower data?
3.107- What is the Information that a borrower must include on an application ?
3.108- What Information an MLO should not inquire?
3.109- Explain Information provided by the borrower regarding the right of refusal • Fair Credit Reporting Act (FCRA)/Fair and Accurate Credit Transactions Act (FACTA) 15 USC § 1681 et seq.
3.11- What is the Initial escrow statements?
3.110- What is the Definition of a “fraud alert”?
3.111- What is the Information included in a “consumer report” ?
3.112- What re Permissible times when a credit report may be accessed?
3.113- What is the Requirement to develop policies and procedures regarding identity theft?
3.114- What is the Definition of “creditor”
3.115- What is the Information included in a FACTA disclosure?
3.116- What is the Length of time a bankruptcy will show on a credit history?
3.117- What are the Credit score evaluation methods • FTC Red Flag rules, 16 CFR Part 681 ?
3.118- What are the Parties subject to “red flag” rules?
3.119- What is the Enforcement authority for “red flag” rules • Bank Secrecy Act/Anti-Money Laundering (BSA/AML) ?
3.12- What Changes can be made to the HUD-1/Good Faith Estimate?
3.120- What are the Requirement that companies protect consumer information?
3.121- What are the Facts about Suspicious Activity Reports (SARs) ?
3.122- What are the Circumstances that require filing a SAR?
3.123- What are SAR privacy requirements• Gramm-Leach-Bliley Act (GLB) – Privacy, FTC Safeguard Rules and Do Not Call ?
3.124- What is on-public information regarding a customer?
3.125- What is Permissible use of non-public information regarding a customer?
3.126- What is the Purpose of Act
3.127- What is the Requirement for written privacy policy disclosures ?
3.128- What are Acceptable delivery methods for a privacy notice?
3.129- What are Permissible hours for telephone calls ?
3.13- What is the Equal Credit Opportunity Act (ECOA), 12 CFR Part 1002 (Regulation B)?
3.13- What is the process of Issuing a Good Faith Estimate when all the information has not been provided?
3.130- What is the requirement for Written policies for maintaining Do-Not-Call lists?
3.131- What Precautions should be taken to protect customer information?
3.132- What is the Purpose of the National Do-Not-Call Registry ?
3.133- What are Permissible solicitation scenarios?
3.134- How should a Do-Not-Call request be handled?
3.135- Retention of information after a solicitation • Mortgage Acts and Practices – Advertising, 12 CFR Part 1014 (Regulation N)
3.136- What is the requirement for Advertisements referring to specific credit terms?
3.137- What is the Length of time required to retain advertisements ?
3.138- What Information is required to be included in an advertisement?
3.139- What are the Triggering terms that require additional disclosure?
3.14- What Factors cannot be used to discriminate?
3.140- What is the Violations of the Act • Electronic Signature in Global and National Commerce Act (E-SIGN Act) ?
3.141- What are the Required ESIGN disclosures?
3.142- How is the Borrower’s consent obtained regarding access to information in electronic format?
3.143- What are the Requirements for maintaining records in electronic format?
3.144- What are the Ways to verify a borrower’s identity • USA PATRIOT Act?
3.145- What is the Primary purpose of the Act?
3.146- What are the Major functions of the Act?
3.147- What is the Confidential nature of filing reports ?
3.148- What are the Ways to verify a borrower’s identity?
3.149- What Parties are subject to the Act?
3.15- How is the borrower notified of action taken?
3.150- What is the Requirement to have a Customer Identification Program in place and verifying the identities of borrowers • Homeowners’ Protection Act (Private Mortgage Insurance (PMI) Cancellation Act)?
3.151- What are the Major functions of the Act?
3.152- What Documents must be provided to a borrower at loan consummation • Dodd-Frank Act ?
3.153- What are the Re-financing situations?
3.154- Explain Law oversight over TRID
3.155- What are the Independent appraisal requirements ?
3.16- What are General permissible acts under the Equal Credit Opportunity Act?
3.17- Under what Circumstances is it acceptable to deny credit/loan?
3.18- Components of a “notice of adverse action”
3.19- What is the Definition of “adverse action”
3.2 What is the origin and purpose of RESPA?
3.20- What are the General provisions of Regulation B ?
3.21- What are the Exceptions to providing the appraisal report?
3.22- What are “Prohibited Factors” ?
3.23- What are Required disclosures when an application is denied?
3.24- What Acceptable terms can be used to describe marital status?
3.25- What procedure should be adopted to issue an Adverse action notice, including when multiple applicants/guarantors are on the loan request?
3.26- What is the Definition of “elderly” ?
3.27- What are “Disparate treatment” scenarios?
3.28- What are Record retention timelines?
3.29- What are the Requirement for a co-signer?
3.3- What are the prohibitions, limitations and exemptions set by RESPA
3.30- What Factors are considered when determining creditworthiness?
3.31- What are the Types of acceptable income considered during a loan review?
3.32- How is a Request for missing application information made and communicated?
3.33- Explain Adverse action scenarios
3.34- Information required on a loan application
3.35- What are the charecteristics of Adverse action?
3.36- What is the required Timeframe for sending an adverse action to an applicant?
3.37- What are the Actions an MLO should take when a borrower refuses to provide ethnic, race or gender information • Truth-in-Lending Act (TILA), 12 CFR Part 1026 (Regulation Z) ?
3.38- What is “Notice of right to rescind” ?
3.39- What are Permissible fees and finance charges?
3.4- What Types of loans is RESPA applicable to?
3.40- What are guidelines and requirements for Advertisement?
3.41- What is the core concepts of the Truth-in-Lending Act?
3.42- What is Total points and fee threshold?
3.43- What is the Definition of “finance charge” ?
3.44- What is the Definition of “annual percentage rate” ?
3.45- What Loans are covered by the Truth-in-Lending Act?
3.46- What is the Definition of a “business day”?
3.47- What are Permissible annual percentage rate tolerances?
3.48- What is the Definition of “dwelling”
3.49- What is the Definition of “residential mortgage loan”
3.5- What are Settlement services ?
3.50- What is the Definition of “business day” in a mortgage rescission
3.51- What are Record retention timeframes?
3.52- How are “seller contributions” Classified?
3.53- What are Refinancing scenarios with rights to rescind certain types of transactions • Home Ownership and Equity Protection Act – High-Cost Mortgage, HOEPA Sections 32 and 12 CFR Part 1026 ?
3.54- What is Minimum term for a balloon payment?
3.55- What are Examples of “covered loans” ?
3.56- What is allowed under HOEPA
3.57- What are the Limitations on broker fees?
3.58- What is the Entity that enforces HOEPA?
3.59- What Types of loans/lines of credit are subject to HOEPA • Higher Priced Mortgage Loans (12 CFR 1026.35) ?
3.6- What disclosures is required to the customer for an MLO who is also a broker?
3.60- What is the Definition of “high priced/cost mortgage”?
3.62- What are the Prohibitions within “high priced” mortgages?
3.63- Explain Loan Originator Compensation relating to Refinance mortgage loans • (12 CFR 1026.36(d)) ?
3.64- What is the compensation of MLO based upon?
3.65- What are the The rules for who may compensate an MLO • TILA-RESPA Integrated Disclosure Rule (TRID) (a.k.a “Know Before You Owe”) ?
3.66- What are the Prohibitions on discrimination?
3.67- What are the timeframes on Disclosure?
3.68- What is the Section on disclosure where origination charges are reflected?
3.69- What is the Affiliated Business Disclosure Special Information Booklet?
